Aronne Debono, Head of Business Development and Corporate Services at BOV Fund Services Limited, discusses the leading fund administrator in Malta and the benefits of setting up funds on the island.
FIRST CHOICE FOR FUND ADMINISTRATION
Malta is home to a complete ecosystem of financial services, traditionally comprising pensions, private wealth, credit and financial institutions, and insurance.
One of the nation’s leading recognised fund administrators is BOV Fund Services Limited (BOV Fund Services), a fully owned subsidiary of Bank of Valletta plc, the largest banking group on the island and the first bank to be deemed of systematic importance in Malta.
Regulated by the Malta Financial Services Authority (MFSA) and licensed as a Class C Company Service Provider by the MFSA, BOV Fund Services was incorporated in October 2006 to take over all fund administration services from Valletta Fund Management Limited, now known as BOV Asset Management Limited (BOV Asset Management).
Today, the company provides a comprehensive range of fund administration services to fund managers and promoters. This full suite, which includes fund accounting, net asset value calculations, transfer agency, and regulatory reporting, ensures clients can rely on a single provider for all their fund administration needs.
With almost 30 years of experience in providing these financial services, the company has developed a deep understanding of both local and global markets, allowing it to offer tailored solutions that meet the specific needs of its clients.
Being based in Malta is another differentiator for BOV Fund Services as it benefits from the island’s well-regulated financial environment and position as a hub for international business.
“Our combination of local knowledge and global reach makes us an attractive choice for fund managers looking to leverage the island’s strategic advantages,” highlights Aronne Debono, Head of Business Development and Corporate Services.
The company also places a strong emphasis on regulatory compliance and risk management, leverages advanced technology to enhance the efficiency and accuracy of its services, and profits from the financial strength and stability of one of Malta’s leading banks.
“These differentiators enable BOV Fund Services to stand out in a competitive market and attract a diverse range of clients seeking high-quality, reliable fund administration services,” he notes.
EXEMPLARY LEVEL OF SERVICE
Customer service is of paramount importance to BOV Fund Services as it underpins the company’s commitment to providing high-quality and reliable fund administration.
The company’s value proposition places particular focus on key operating performance indicators (OPIs) that are monitored on a regular basis, namely the timeliness and accuracy of reports, high quality and integrity of data, minimisation of pricing errors, and tailor-made service-level agreements (SLAs).
“We pride ourselves on achieving year-on-year positive results on all OPIs, as evidenced through our regular client satisfaction surveys, whilst our ISAE 3402 quality certification ensures that set standards are adhered to and maintained throughout and on an ongoing basis,” affirms Debono.
Management focuses on developing long-term relationships with customers and ensuring an exemplary level of service, such as a personalised, customer-centric approach.
“We work closely with clients to understand their unique needs and offer customised solutions aligned with their expectations, maintaining open lines of communication,” he sets out.
Regular and proactive communication with clients is another priority to keep them informed about the performance of their fund, regulatory updates, and any issues that may arise.
This is complemented by timely and accurate reporting, a cornerstone of the company’s service to provide reliable and precise data insights, as well as responsive support.
“BOV Fund Services is committed to being responsive to client enquiries and issues. We have robust support mechanisms in place to address any queries or problems swiftly and effectively, minimising operational disruption,” states Debono.
Quality assurance processes, meanwhile, monitor and evaluate the effectiveness of the company’s service delivery.
“Regular audits and reviews help our services meet the highest standards of quality and compliance, ensuring that customer service remains exemplary and fostering strong and lasting relationships with clients,” he tells us.
NPIF FRAMEWORK
By 2027, the financial services sector is expected to account for 10 percent of Malta’s GDP, a country that is undoubtedly way ahead of many others in terms of exploiting new technologies.
Indeed, following the roll-out of the world’s first holistic regulatory framework for distributed ledger technologies (DLTs), Malta has become the go-to destination for blockchain-based businesses that are looking for shelter from regulatory uncertainty in other areas of the globe.
There is likewise an ongoing drive to innovate the alternative investment space with the recent introduction of the Notified Professional Investor Fund (NPIF) framework, a fast-track process for below-threshold alternative investment funds (AIFs) and AIF managers (AIFMs) which came into effect in January 2024.
“What sets NPIFs apart is their remarkable speed to market. Taking just 10 business days to launch, they are a perfect fit for time-sensitive investment strategies,” acclaims Debono.
As NPIFs are subject to a notification process and not licensed by the MFSA, they benefit from lower setup, operational and regulatory costs, as well as forgoing many processes and application documents, which can lengthen the time for a fund to come to market.
NPIFs must appoint a due diligence service provider, managed by either a third-country AIFM or a de minimis AIFM holding a license in Malta or the EU.
The NPIF framework merges the appeal of Malta’s existing Professional Investor Fund (PIF) framework with the benefits of ‘notified’ status, creating an efficient solution for fund managers.
Following several discussions, the MFSA has just launched a public consultation on extending the framework to include self-managed NPIFs.
“Recent economic success and stability have set Malta up as the commercial hub of the Mediterranean”
Aronne Debono, Head of Business Development and Corporate Services, BOV Fund Services Limited
POPULAR FUND JURISDICTION
Another project that the MFSA is working on is a framework for collective investment schemes structured as limited partnerships without separate legal personality.
“The proposal seeks to bridge a gap that is currently present in the local regulatory framework and ultimately strengthens Malta’s position as a fund jurisdiction,” outlines Debono.
The country has become a popular fund jurisdiction because it allows investors to operate with peace of mind in a stable, buoyant economy with a sterling reputation.
In particular, the island has firmly established itself as a prime jurisdiction for hedge and retail funds over the last few years.
No longer considered an emerging funds domicile, it offers a range of sophisticated investment vehicles for different purposes.
“Undoubtedly, Malta’s variety of fund structures has been instrumental in attracting start-up managers as well as fully-fledged AIFMs,” Debono observes.
Malta additionally offers an advantageous taxation system, a favourable fiscal regime, comprehensive regulation, efficient application handling, service provider flexibility, self-managed structures, cost competitiveness, and a cosmopolitan lifestyle.
As a fully-fledged EU member state since 2004, the island also enables easy access to the European investment market.
“Recent economic success and stability have set Malta up as the commercial hub of the Mediterranean,” acclaims Debono.
SPECIALISED EXPERTISE
Partnerships with other financial institutions, legal advisors, and technology providers are crucial to the success of BOV Fund Services as they enable the company to access specialised expertise and resources as well as enhance trust and credibility.
“Clients often prefer working with fund service providers that have established relationships with reputable partners,” Debono insights.
“Partnerships can also facilitate entry into new markets or segments, as partners may have established networks and knowledge in these areas, allowing BOV Fund Services to expand its reach more effectively.”
Collaborating with innovative partners can help BOV Fund Services stay competitive by adopting new technologies and best practices.
“Strong partner relationships can also enhance the overall client experience by providing comprehensive and seamless service offerings, leading to higher customer satisfaction and retention rates,” he expands.
BOV Fund Services recognises the importance of not only partner relationships, but also employee contributions.
It therefore invests in ongoing staff training and development to maintain high service standards, with opportunities for continuous learning and professional growth offered through training programmes, workshops, and conferences that help staff members enhance their skills.
This ensures the team is knowledgeable about the latest industry developments, regulatory changes, and best practices in customer service.
On top of this, the company implements formal recognition programmes, service awards, and performance bonuses that acknowledge outstanding efforts and achievements.
There are also clear career progression paths and regular performance reviews so employees understand how they can grow within the organisation, their strengths, and areas for improvement.
“Involving staff in decision-making processes, brainstorming sessions, and strategic planning makes them feel valued and integral to the company’s success,” Debono adds.
Flexible and remote working arrangements are additionally made available by BOV Fund Services, offering its employees a better work-life balance. This is proven to boost staff morale and productivity.
Team-building activities and social events, meanwhile, strengthen team cohesion even further and create a positive working environment, whilst comprehensive benefit packages and performance incentives lead to higher job satisfaction and increased productivity.
A happy and incentivised team will be key to BOV Fund Services achieving its future priorities and continuing to offer a great service.
“We are aiming to grow, increase our client base and revenues, diversify into different jurisdictions, and keep up with market trends,” concludes Debono.
BOV FUND SERVICES LIMITED PARTNER
